Automotive News - August 4, 2008 - (Page 4) 4 • AUGUST 4, 2008 COO latest to leave Chamco; joins ZX Auto Namrita Chow namritachow@autonewschina.com Thomas Del Franco will become general manager for worldwide sales at ZX International, a ZX Auto subsidiary. ZX Auto terminated its contract to supply vehicles to Chamco Auto. Del Franco was previously COO of Audi of America and spent several years as a Mazda sales executive in North America. Chamco, of Parsippany, N.J., had sought to import a ZX pickup and SUV to the United States. But ZX terminated its contract to supply vehicles to Chamco Auto after the would-be importer was put into the hands of a legal custodian in April by a New Jersey court after a management dispute. More than a dozen key Chamco executives have resigned. The custodian, retired New Jersey SHANGHAI — Chamco’s COO has jumped ship to ZX Auto. Hebei Zhongxing Automobile Co., also known as ZX Auto, has hired Thomas Del Franco as general manager for worldwide sales of subsidiary ZX International. He is to be based in the company’s hometown of Baoding, Hebei province, China. In an online posting, Del Franco says his goal will be “to expand (the) worldwide reach of ZX Auto into 40 countries, with the last expansion to come into North America, where a full subsidiary will be formed to service the most important market in the world.” judge Gerald Escala, has been determining ownership of Chamco and is managing the company’s affairs. A court hearing on Escala’s findings is scheduled for Friday, Aug. 8. Meanwhile, ZX Auto apparently has gotten together with FAW Group. ZX Auto wasted no time in adding a four-door sedan and five-door hatchback to the company Web site. The sedan and hatch are called the N3 line and have the FAW-Xiali logo. Speaking at the Beijing auto show in April, ZX Auto CEO Robert Yu said he wanted assembly of the company’s Landmark SUV and Grand Tiger pickup to begin in Mexico within 18 to 20 months. FAW Group has formed a joint ven- ture with the Salinas Group to build an assembly plant in Mexico. The factory will be in Zinapecuaro, between the western city of Guadalajara and Mexico City. The venture aims to assemble three subcompact FAW cars: the Xiali, Vita and a model under development and currently known as the TFC-W. Production is scheduled to start in late 2010. The venture plans sales in Mexico and Central America. ZX is also reportedly in talks with General Motors to explore opportunities for cooperation, including possible equity ties, a source close to the situation said in July. c After 5 funky years, Toyota’s Scion now finds itself in a funk Mark Rechtin mrechtin@crain.com Waning interest Online shopping of Scion is barely half what it was in the brand’s boom years of 2005 and 2006, according Compete Inc. At that time, Scion attracted 100,000 to 120,000 Internet shoppers a month. Since the redesigned xB and xD were launched last summer, Scion has drawn 60,000 Internet shoppers only once. The number of 18- to 34-year-olds shopping the brand online is also down. 150,000 125,000 100,000 LOS ANGELES — Scion got off to a fast start five years ago, but now Toyota executives are forced to rethink their funky experiment — and do it a lot sooner than they expected. At issue is Scion’s mission — and whether the idea behind the trendy brand still makes sense. A year after the second generation of Scion’s youth-oriented vehicles debuted, Toyota faces several problems: The number of young people shopping Scion has dropped dramatically since 2006. Before $4-a-gallon gasoline gave all small cars a big boost in April and May, Scion was in a slump it couldn’t seem to get out of. And in June, sales were declining again. While the brand had attracted fuel-economyminded buyers, many are much older than Scion’s demographic target: 18- to 24-year-olds. That threatens the hipster image Toyota has carefully cultivated for Scion. So was launching a youth brand such a hot idea after all? “If we could relaunch Scion, I wouldn’t ever have called it a youth brand, because it’s a kiss of death,” says Brian Bolain, a former Scion corporate manager who now runs Lexus’ lifestyle events. “It creates problems when you start labeling.” Bolain says it is better when a brand can speak for itself. Sales and promotions manager Jeri Yoshizu: “Scion is being forced to change. We have to refresh our message and move our picture to the new 18- to 24-year-olds.” “Scion is being forced to change,” says Jeri Yoshizu, Scion’s manager of sales and promotions. “We have to refresh our message and move our picture to the new 18- to 24-year-olds.” But the constantly shifting target makes marketing a challenge, Yoshizu says. The first-generation Scions were big hits with young buyers when they launched in California in 2003 and elsewhere in 2004. But from last September through January, monthly sales declined from each previous month, even though dealers had two redesigned models in their showrooms. Year-onyear sales fell for 17 straight months. The losing streak ended in March. Then when fuel prices soared in April, Scion sales shot up 41.5 percent compared with the previous April, when barely any cars were in stock during the first generation’s selldown. Sales climbed 28.4 see SCION, Page 18 75,000 50,000 25,000 0 '03/03 '01/04 '01/05 '01/06 '01/07 '01/08 Total internet shoppers 18-34 internet shoppers MARK RECHTIN Scion Vice President Jack Hollis measures success not by sales but by the number of new, young customers who buy Toyota. Acura lineup to grow by ’10; sees ‘potential for coupe’ Kathy Jackson kjackson@crain.com Acura hasn’t had a new vehicle since the August 2006 debut of the RDX. LOS ANGELES — Acura will add a nameplate to its lineup in 2010 as part of an effort to become what company executives call a “tier 1 luxury brand.” “We will have an all-new vehicle,” said Dan Bonawitz, vice president for corporate planning and logistics at American Honda Motor Co. By broadening the lineup, he said, Acura can compete more directly with rivals such as BMW and Mercedes. The new vehicle will be Acura’s first addition since August 2006, when the RDX small crossover joined the lineup. Bonawitz would not give details but said the nameplate will arrive before the redesigned NSX sports car, also due in 2010. John Watts, Acura’s product planning manager, told Automotive News last fall that any additions probably would be in niche segments. “We will look at smaller segments,” Watts said at the time. “There is potential for a coupe like the CL,” which was killed after the 2003 model year. He said a vehicle with a retractable hard top was possible. “We’re always looking at that, too,” Watts said, “but that market is fickle.” Some sources say Acura will offer a four-seat sports coupe, priced in the $50,000 range, that also will come in a convertible version. Acura dealers are eager for new product. They currently sell three cars and two crossovers. Through June, sales were down 14.8 percent to 90,742 units. “We need to start creating more buzz about our products,” said John Hawkins, an Acura dealer in the Los Angeles area. “I’m going to keep Acura in my prayers because they need it.”c
Table of Contents Feed for the Digital Edition of Automotive News - August 4, 2008 Automotive News - August 4, 2008 Losing leases: It hurts already Crisis at Chrysler: Buyers bail GM's really bad news: Its revenue Lincoln reworks bonus plan for dealers Pain spreads beyond Detroit: Nissan offers employee buyouts Mitsubishi changes dealer advisory board GM repeats employee discount program Ford merges brands' sales, marketing After 5 funky years, Toyota's Scion now finds itself in a funk It's a body, er, a bus by Fisher At Tech Center, form follows function Industry nemesis again turns up heat on climate Right products, diverse customers raise suppliers' profits Last-minute leases swamp Chrysler With leases off the table, Chrysler offers new sales incentives GM favors 4 endorsed vendors of dealer management systems GKN to supply F-150 FX4's differential For sale: 2 Metaldyne plants 1 week's notice: Chrysler dealers deserved better Get used to the roller coaster That 1934 Reo had a clutch pedal We sell what the public wants Decision makers can't use hindsight Detroit's truck trauma is self-inflicted Why won't consumers buy Detroit cars? Speaking of ads, don't overlook VW Software helps dealers manage parts Service survey: Customer satisfaction rises Researcher: Vehicles can prevent crashes Personnel Microsoft will offer Live Search Dealers Picture This Nissan offers buyouts to its Tenn. workers Lincoln-Mercury exec joins Kia Kaline out at Ford Penske earnings drop slightly Asbury will move; profits slip S&P downgrades American Axle Best sales news: July is over Now THAT'S resale value ... Sirius-XM satellite radio deal: A mixed bag Don't be misled by Chery's sales; it's a key player McCurdy applies some political (tire) pressure A star is born: The saga of the shrinking sticker Our flag is still there Obama-mobile? Or McCain-carrier? Automotive News - August 4, 2008 Automotive News - August 4, 2008 - (Page Intro) Automotive News - August 4, 2008 - GM's really bad news: Its revenue (Page 1) Automotive News - August 4, 2008 - GM's really bad news: Its revenue (Page 2) Automotive News - August 4, 2008 - Ford merges brands' sales, marketing (Page 3) Automotive News - August 4, 2008 - After 5 funky years, Toyota's Scion now finds itself in a funk (Page 4) Automotive News - August 4, 2008 - After 5 funky years, Toyota's Scion now finds itself in a funk (Page 5) Automotive News - August 4, 2008 - Right products, diverse customers raise suppliers' profits (Page 6) Automotive News - August 4, 2008 - Right products, diverse customers raise suppliers' profits (Page 7) Automotive News - August 4, 2008 - With leases off the table, Chrysler offers new sales incentives (Page 8) Automotive News - August 4, 2008 - With leases off the table, Chrysler offers new sales incentives (Page 9) Automotive News - August 4, 2008 - For sale: 2 Metaldyne plants (Page 10) Automotive News - August 4, 2008 - For sale: 2 Metaldyne plants (Page 11) Automotive News - August 4, 2008 - Decision makers can't use hindsight (Page 12) Automotive News - August 4, 2008 - Decision makers can't use hindsight (Page 13) Automotive News - August 4, 2008 - Speaking of ads, don't overlook VW (Page 14) Automotive News - August 4, 2008 - Service survey: Customer satisfaction rises (Page 15) Automotive News - August 4, 2008 - Personnel (Page 16) Automotive News - August 4, 2008 - Dealers (Page 17) Automotive News - August 4, 2008 - Dealers (Page 18) Automotive News - August 4, 2008 - Picture This (Page 19) Automotive News - August 4, 2008 - Picture This (Page 20) Automotive News - August 4, 2008 - Picture This (Page 21) Automotive News - August 4, 2008 - Picture This (Page 22) Automotive News - August 4, 2008 - Picture This (Page 23) Automotive News - August 4, 2008 - Nissan offers buyouts to its Tenn. workers (Page 24) Automotive News - August 4, 2008 - S&P downgrades American Axle (Page 25) Automotive News - August 4, 2008 - S&P downgrades American Axle (Page 26) Automotive News - August 4, 2008 - Best sales news: July is over (Page 27) Automotive News - August 4, 2008 - Best sales news: July is over (Page 28) Automotive News - August 4, 2008 - Best sales news: July is over (Page 29) Automotive News - August 4, 2008 - Obama-mobile? Or McCain-carrier? (Page 30) Automotive News - August 4, 2008 - Obama-mobile? Or McCain-carrier? (Page 31) Automotive News - August 4, 2008 - Obama-mobile? Or McCain-carrier? (Page 32)
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